Quotr.ai Dictionary
Markup vs Margin
What is the difference between markup and margin?
Markup and margin are two ways of expressing the same added money. Markup is the percentage added on top of cost; margin is that money as a percentage of the final price.
A 25% markup is only a 20% margin. Confusing them quietly erodes profit, especially when sales, estimating, and finance use different language for the same number.
Estimators should know which basis leadership expects when they apply overhead and profit to unit prices or assemblies.
Why it matters
Teams that treat markup and margin as interchangeable often win work at the wrong target return.